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I started this new series/label “Entrepreneur Tips” because with the increasing number of questions I come across is repetitive and enormous so I decided to start this blog series where I will teach and share with you guys my knowledge and build a road towards your business , brand or entrepreneur skills. I will be posting 1 article/ week as of now. As I have other simultaneous projects going on that you can check on my other posts and social sites. But I will be posting more often on this series as I can. This area interest’s me a lot and I am sure lot of people are confused with N-Number of doubts so if you have any questions then feel free to drop down your question, you might get your answer soon.
So the first thing I would like to ask you is - What did you do with your very first earnings? I am going to assume you spent it with friends or gifted something to family members. If so then you are really lacking the investment skill and its importance. This post is clearly for business minds especially Entrepreneurs and freelancers. The reason I am addressing this topic today is because I get a lot of questions and statements like – “I have 500$-5000$ where should I invest it in”, “I can’t afford that” (Even if that thing just costs 10$ or less), “I earned 100$, I am rich” , “I spent my earnings with friends” and so on. Then I begin to think, why do people choose temporary pleasure over permanent? Now, it may not be their cup of coffee to be an entrepreneur or a professional. So if you want to get on the right path towards building your company/brand then I suggest you to follow this one and only rule that every single person should posses –
Invest your initial earnings on the next big thing
Your initial bucks are the most important investment that you should focus on, even if it is 2$. Invest your initial earnings on the next big thing that is where the ROI(If you are not aware of ROI as an entrepreneur then you have a long road to travel but do not worry. I will cover all the concepts and make sure you sign up for newsletters) concept comes into play.
What is ROI?
ROI is “Return On Investment.” In simple words, it means if you invest 10$ on something then that something should be able to provide you 15-50$ or its equivalent. Anything that earns you extra a well as covers more then you invested is called ROI. The other side to this is the measure of knowledge. Suppose you want to invest on online courses then make sure to check out demo classes and if you feel like its worth it then ROI comes into measure with the amount of knowledge that is shared with you. Here the ROI is the knowledge and there is no harm paying for knowledge. You don’t seek money out of that BUT you should be able to turn that knowledge into action and get your investment back. That’s the real thrill!
The answer should be - You should save all those earnings and work extra if needed because the price of anything is not static so you want to grab the opportunity when it is available instead of kick out your own luck. Once the sufficient funds are collected, make your investment.
How to control oneself from first paycheck spending?
I understand that it is an happy occasion and you want to celebrate it but take control of yourself. Because the choice you make now is directly proportional to your future earnings. If you want to party hard, do it and be right where you are or else you have a choice to control yourself just for 1-3 months and get a passive income which you can spend like nuts! Trust me no one will stop you then!
This is what I did my initial earnings and I am proud of it. This is my story –
For those who don’t know me. I am into lot of online activities and multi-content creator. I make YouTube videos and Blogger too but these article are strictly limited to Internet/Digital marketing and my mentorships that I undertake for the same.
I remember earning around 1-2$ just for leaving a review and I was really excited that I make 67rs-140rs (Converted into national currency) just for writing 121 characters. It was unbelievable because I talk a lot with my online friends/clients and the amount of typing I do would make me a billionaire by now. So I took it in a positive way and I SAVED that money. Later on, I made couple bucks more then gradually the level of work that I undertook was standardized (I was working as a freelancer and still do in my spare time) I saved all those earnings and invested them once I had sufficient funds to buy a software or tools but in one-by-one manner. It is bit obvious that you can crack a software which is illegal but I was addressing to special online tools that I use that are worth the investment. So how would some software or tools give me better ROI? I put those tools in use and got my ROI.
As days pass on, my investments were fruitful and I had enough money not only to invest but to buy those extra luxury things that I need. Now, here comes another lesson that you should posses. Buy things that you are in need of. As you know I am a YouTuber and was in need of hard drive badly since I did not want to lose all my materials and videos because my laptop was affected by virus.
At this point you had 3 options –
1) Buy a new laptop
2) Buy Anti-Virus
3) Buy hard drive for backup
I wouldn’t want to invest on a laptop even though I don’t own a high end laptop but the one I am using now is capable of delivering my needs.
I wouldn’t invest on Anti-Virus since I am an ethical hacker. I understand that it is pretty useless to invest on anti-virus. Not that it is not needed but I do not need it.
I can invest on a hard drive. I can transfer all my files and keep a backup. If the laptop crashes I can make a backup again on laptop once I get it repaired. If the hard drive crashes I can always make a backup again from laptop. And lets consider that unlucky case where both laptop and hard drive crash at once? I am smart enough to have backup of my most important files on my pen drives. This is called a planned foresight. I always keep a backup of important files on pen drive and leave the unnecessary files that I can replace again from online.
You can check out my invest product -
That was something I invested on myself because without those files, my business won’t run nor will I have an income. Later, I had enough funds to gift my mother a fabulous phone. It is graceful to spend when it is needed. Don’t be a miser or be in cheap mentality that you do not have the money when you just earned hecks. Use them! So now you see the prominence of investing on right things?!
If I had spent that money on partying then I wouldn't have the chance to party harder,today.
Bottom line: Make the right investment. Focus on better ROI. Have a foresight. Spend once you have enough money for investment as well as luxury. Do not take debts. Spend! Because you are not going to take that money with you to grave.